Gap

A gap in forex occurs when a currency pair's opening price is significantly different from its previous closing price, creating a visible space on the chart with no traded prices in between. Gaps most commonly appear at the start of the trading week when markets reopen on Sunday after the Friday close. They can be caused by major news events, geopolitical developments, or significant economic announcements released outside trading hours. Traders often watch for gap fills, a tendency for price to return and cover the gapped area before resuming its original direction.